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How to Sell Your Life Insurance Policy

If you need cash now, selling your life insurance policy may be a viable option.

Instructions

  • Step 1: Find a broker Find a settlement company or broker that you would like to do business with. Ask friends and family for recommendations.
  • TIP: Your eligibility for Medicare and Medicaid may be affected by the income made from the sale of your policy.
  • Step 2: Fill out paperwork Fill out an application, policy information release, and a medical information release.
  • Step 3: Accept offer Accept an offer and wait for a purchase contract from the settlement company.
  • Step 4: Complete change of ownership Complete the change of ownership and change of beneficiary forms. Send the forms by certified mail to the insurance company.
  • Step 5: Receive funds Receive your funds through wire transfer from an escrow account to your personal account.
  • FACT: Did you know? It is believed that Lloyd’s of London, known for insuring celebrity body parts, started as a coffee house and marine insurance company in 1688.

You Will Need

  • A settlement company or broker
  • Friends and family
  • An application
  • Release forms
  • A purchase contract
  • A change of ownership form
  • A change of beneficiary form

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